NZD/USD drops and pops through 21-D SMA
NZD/USD dropped and popped in early Asina trade from a touch below the 0.73 handle to 0.7286 tracking moves in the Aussie as RBA Gov. Lowe makes comments on monetary policy and the value of the Aussie dollar. However, at the time of writing, USD/JPY collapsed on news that Gary Cohn will resign as Trump top economic adviser. Currently, NZD/USD is trading at 0.7298, up 0.10% on the day, having posted a daily high at 0.7303 and low at 0.7289.
RBA's Lowe: would be helpful to have lower AUD/USD
NZD tracking yen and Aussie
There is a lack of domestic data from New Zealand although we had the change in whole milk powder overnight in as -0.8% vs the prev 0.3% with the GDT Price Index -0.6% vs prev -0.5%. instead, the Kiwi is tracking yen weakness through the cross and mirroring the Aussie on the following comments from Lowe:
- Lowe says at the moment would be helpful to have lower AUD/USD.
- Lowe says but AUD/USD not broadly overvalued.
- Lowe says AUD/USD around fair value, we have what we have.
NZD/USD
Technically, the chart is leaning bearish with repeated recovery failures. However, daily RSI bias is up with the price back above the 50-Day SMA at 0.7262 and the 21-D SMA at 0.7292. 0.7360 is the key upside target to open a run towards 0.7435 daily high double top.